Stocks down on trade war jitters

The local stock barometer slipped for the second straight session on Wednesday as fresh US-China trade war jitters dragged down regional markets while President Duterte’s tirade against water concessionaires raised concerns on some publicly listed companies.

The main-share Philippine Stock Exchange index (PSEi) fell by 39.25 points, or 0.5 percent, to close at 7,815.93. Mr. Duterte’s statement against water concessionaires also affected companies with interest in Maynilad and Manila Water.The market was weighed down most by the mining/oil and property indices, which both lost more than 1 percent. The holding firm and services counters also fell.

On the other hand, the financial and industrial counters slightly gained.

Total value turnover for the day amounted to P7.72 billion. Despite the PSEi’s decline, some overseas investors took the chance to pick up selected stocks, resulting in a net foreign buying of P922.23 million.

There were 122 decliners that overwhelmed 58 advancers, while 47 stocks were unchanged.

Metro Pacific Investments Corp., the parent company of Maynilad, tumbled by 10.71 percent after the President criticized an allegedly onerous contract by Maynilad and Manila Water with the government.

DMCI, a strategic investor in Maynilad, also slid by 3.85 percent.

Manila Water, which is not part of the PSEi, also lost 4.79 percent.

ABS-CBN Philippine depositary receipts went down by 4.2 percent. Mr. Duterte also lashed out at this broadcasting giant, whose congressional franchise is expiring next year. The President said that the franchise would not be renewed.

Ayala Land and Security Bank fell by 2.65 percent and 1.19 percent, respectively, while SM Investments lost 0.65 percent.

Ayala Corp., SM Prime, Meralco and Robinsons Land also slipped.

On the other hand, Jollibee gained 3.13 percent while BPI added 2 percent.

Metrobank rose by 1.49 percent while International Container Terminal Services Inc., URC and Aboitiz Equity Ventures slightly gained.